County records show Island Express owes more than $111,000 in taxes

Island Express Boat Lines Ltd. owes more than $111,000 in taxes to the county, according to records from the Erie County auditor's and treasurer's offices.

However, the boat line, which operates the Island Rocket ferries to the Lake Erie islands, is asking the state to re-evaluate the values of its boats, which would lower its property tax bills, said Bill Annand, general manager for the Island Rocket.

"We're still in the appeal process on the valuation that the state places on each boat," Annand said. "We are paying a considerable amount toward the property taxes and going through the appeals process at the same time."

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Last year, Island Express was delinquent on $105,600.69 in property taxes, according to the Erie County Treasurer's Office. In October, Island Express paid $10,500 toward the taxes and in November agreed to pay $9,510.07 twice a year, along with its regular tax payments, according to treasurer's records.

In February and July this year, Island Express made two payments on past taxes due, each worth $9,510.07, according to treasurer's records.

In February, Island Express owed $21,292.91 on current taxes, but only paid $11,472.69, said Erie County Auditor Jude Hammond.

In July, the Island Express did not make any payment toward the taxes regularly owed, according to treasurer's records. Now, the entire amount is due, said county Treasurer Jo Dee Fantozz.

"We had them on a payment plan and they defaulted on it, so that makes everything come due," Fantozz said.

The boats are regulated as a public utility and last year, Island Express appealed the valuation of the boats to the Ohio Department of Taxation.

In a June hearing, the department upheld the valuation, more than $2.1 million, when no one from Island Express came to the hearing, said Gary Gudmundson, spokesman for the department.

However, the boats' market values are "considerably less" than the state's valuation, Annand said.

For example, one appraisal valued the Island Rocket at $850,000 and the company has signed a purchase agreement to sell the boat to a Florida company for less than that, Annand said, although the exact figure was not available.

Island Express representatives did not go to the hearings because of operational difficulties in June, but are appealing the decision to the Ohio Board of Tax Appeals, Annand said.

"We're actively pursuing the appeal," Annand said. "We hope to resolve it as soon as possible."

Baxter, one of 21 investors in the boat line, said he has asked Chief Assistant Criminal Prosecutor Mary Ann Barylski to start paperwork to get special counsel for the county to handle the tax issue. Baxter's office provides legal counsel to Erie County Treasurer Jo Dee Fantozz and Auditor Jude Hammond, who deal with property tax issues.

Baxter said there appears to be a genuine dispute over the valuations, but deferred further comment to Annand.

"Whenever I get outside counsel, I think it's the better part of discretion to not comment at all," Baxter said